Events

UEX’s 100%-owned Horseshoe & Raven deposits is our most advanced stage project, located 5 km south of Cameco’s Rabbit Lake operation with direct access to all-weather roads and powerlines which cross over or are located within mere metres of the deposits themselves.

Situated between 50 and 450 m depth and with no sandstone cover, the Horseshoe and Raven Deposits are amenable to conventional open pit and underground mine development and will not require costly ground freezing or extra radiation protection measures routinely employed at many of Saskatchewan’s uranium operations.

UEX is currently investigating the economic potential and technical viability of using heap leach extraction. Our 2015 metallurgical test indicated excellent uranium recovery was possible using heap leaching. A scoping study was completed in early 2016 that has encouraged the Company to continue investigating the potential of heap-leach extraction.

Horseshoe and Raven Uranium Deposits are located only 5 km south of Cameco’s Rabbit Lake Mill within the eastern Athabasca Basin. The deposits are serviced by excellent infrastructure, as an all-weather road and existing power line cross over the deposits themselves.

The deposit is hosted within gently-folded quartzite and arkosic rocks and represents a unique style of basement-hosted Athabasca-type uranium deposit. Given their shallow depths, uranium grades and the physical location of the deposits east of the margin of the Athabasca Basin, the Horseshoe and Raven Deposits are amenable to both potential conventional open-pit and underground mining extraction and would likely have a much lower risk of both water incursion events and radiation exposure compared to other Athabasca uranium operations.

Mineralization at the Horseshoe Deposit has been defined over a strike length of approximately 800 m and occurs at depths between 100 m to 450 m below surface. Mineralization occurs in several stacked and shallow plunging shoots that generally follow the fold axis of a gently-folded arkose-quartite package. Uranium mineralization is often best developed along the dilational zones developed between the bedding units.

The Raven Deposit is located 500 m southwest of the Horseshoe Deposit and has been defined over a strike 910 m and ranges between 100 m and 300 m in depth. The bulk of the uranium mineralization occurs in two sub-horizontal tabular zones that are oriented parallel to the axial plane of the folded arkose-quartzite package.

In 2011, UEX completed a preliminary economic assessment (see attached link) of the Horseshoe and Raven Deposits that considered toll milling at one of the two nearby uranium mills.

In 2016, UEX conducted additional metallurgical testing of Horseshoe and Raven mineralization with the objective of evaluating the potential benefit of heap leach extraction in lieu of toll milling (see UEX news release dated July 18, 2016). The testing program was conducted SGS Lakefield Laboratories and was successful at demonstrating the potential of heap leaching. UEX commissioned a scoping study of the Horseshoe and Raven Deposits by JDS Mining in December 2016. UEX is encouraged by the results of the study and will be conducting further investigations into heap leaching at Horseshoe and Raven in the future. The results of scoping studies are not permitted to be disclosed under Canadian securities regulations.

The current technical report, “Preliminary Assessment Technical Report on the Horseshoe and Raven Deposits, Hidden Bay Project, Saskatchewan, Canada” (the “Preliminary Assessment Technical Report”, the “PA” or the “Horseshoe-Raven Report”), prepared by SRK Consulting (Canada) Inc. (“SRK Consulting”) and G. Doerksen, P.Eng., L. Melis, P.Eng., M. Liskowich, P.Geo., B. Murphy, FSAIMM, K. Palmer, P.Geo. and Dino Pilotto, P.Eng., with an effective date of February 15, 2011 was filed on SEDAR at www.sedar.com on February 23, 2011.Details for the mineral resource estimates at a cut-off grade of 0.05% U3O8 as follows:

2. The Horseshoe, Raven, and West Bear mineral resources were estimated at a cut off of 0.05% U3O8, and are documented in the “Preliminary Assessment Technical Report on the Horseshoe and Raven Deposits, Hidden Bay Project, Saskatchewan, Canada” (The Preliminary Assessment Technical Report”, the “PA” or the Horseshoe-Raven Report”) with an effective date of February 15, 2011 which was filed on SEDAR at www.sedar.com on February 23, 2011.

3. Certain amounts presented in the Hidden Bay N.I. 43-101 report have been rounded for presentation purposes. This rounding may impact the footing of certain amounts included in the tables above.

The PA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.